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Basic Question 4 of 4
Which approach is more likely to involve a weighted average of the costs of capital for different business units within a company?
A. Top-down approach
B. Bottom-up approach
C. Cost of equity approach
D. Project-specific approach
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Learning Outcome Statements
explain top-down and bottom-up factors that impact the cost of capital;
CFA® 2025 Level II Curriculum, Volume 3, Module 18.